There are two choices for replacing a punch press. The basic model has a useful life of 8 years while the deluxe model has a useful life of 12 years. Whats the most appropriate analysis period for this problem?
a. 20 years
b. 96 years
c. 1.5 years
d. 24 years
1
Expert's answer
2015-10-01T09:39:22-0400
If there are two choices for replacing a punch press and if the basic model has a useful life of 8 years while the deluxe model has a useful life of 12 years, then the most appropriate analysis period for this problem is 24 years, because we can divide it both by 12 and 8.
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